Will Leaving a Gift to Charity Affect What My Family Gets?
It is the question many people think but do not always ask out loud. You care about a cause. You have supported it for years. And you like the idea of that support continuing after you are gone. But alongside that is a quiet concern: will giving to charity mean my family gets less?
It is a completely reasonable thing to wonder, and it deserves a thoughtful answer.
The short version is: it depends on how a gift is structured. This blog explores the main types of charitable gifts in Wills and some of the ways people think about balancing charitable giving with providing for their family. It is general information only, and not legal or financial advice.
The two main types of charitable gifts in a Will
When leaving a gift to charity in your Will, there are generally two main options:
A specific gift (also called a Gift of Significance)
This is a set amount of money or a named item. For example: 'I leave $5,000 to the *Insert charity name here*'. The amount is fixed in advance. Your family (or whoever you decide to leave your remaining estate to), receives what remains after debts, estate costs, and any specific gifts have been settled.
A residuary gift
This is a share or percentage of what remains after all specific gifts and estate costs have been covered. For example: 'I leave 10% of the residue of my estate to the *insert charity name here*’. ' The actual amount will depend on the size of the estate at the time, and both the charity and other beneficiaries share the residue proportionately.
Both approaches are commonly used. Neither is inherently better than the other. The right fit depends on your own circumstances, priorities, and what you want your Will to achieve
How people often think about balancing both
People approach this in different ways. The following are some common considerations, though what makes sense will vary from person to person and is ultimately something to work through with a legal professional.
A fixed specific gift can keep the charitable portion separate from what your family receives, since it is set in advance rather than drawn from the residue.
A residuary percentage means the charitable share and family shares move together as the estate grows or shrinks over time.
Some people structure their Will so that family members are provided for first, with any remaining surplus going to charity.
These are general observations about how people structure their Wills, not recommendations for what you should do.
A gift in your Will is not an either/or decision
Many people assume that leaving something to charity means taking something away from family. For most people, that is not how it plays out in practice. Charitable gifts are often structured alongside generous provisions for loved ones, as an addition rather than a replacement.
For many donors, a gift in their Will reflects the same values they have held throughout their lives, a connection to a cause that mattered to them, extended one final time. Whether or how to include one is a personal decision that only you can make.
How charitable gifts work in a Footprint Will
When you create or update a Will through Footprint, you can include a charitable gift as part of the process. You choose the charity, the type of gift, and the amount or percentage. You can also change or remove this at any time as your circumstances evolve.
Thinking about including a charity in your Will? Visit myfootprint.co.nz to get started.
This article is general information only and is not a substitute for legal or financial advice. Every situation is different. If you are considering a charitable gift in your Will, we recommend speaking with a qualified legal professional about your specific circumstances.
